Cardano Market Update

Cardano continued to trade within the range and saw consolidation near the range lows. The hesitance to bid ADA near the $0.7 support meant the bulls were too weak to force a recovery.

Cardano (ADA) saw whale accumulation a few days ago, but the price did not react positively. The trend of Bitcoin (BTC) has not been bullish in recent days either, adding to the selling pressure on ADA.

Range Lows Might Be Defeated

The strong surge from the range lows to the highs in early March indicated a bullish sub-structure for ADA on the 1-day chart. A higher low was formed at $0.67 ten days ago after the lower low from late February at $0.63.

However, the swing structure remained bearish, as the $1.13 resistance level has not been breached yet. This highlights the importance of the range.

With ADA near the range lows, a buying opportunity was identified, as noted in a report from a week ago. Despite this indication, little has changed since then. Cardano traded around the $0.7 level but displayed minimal momentum. The MACD and signal lines have intertwined, showing a lack of momentum.

The On-Balance Volume (OBV) also failed to increase, indicating that accumulation was not occurring based on buying volume. Despite being perceived as a good buying opportunity, ADA remained in consolidation and was not prepared for a breakout yet.

A move past local resistance at $0.8 would signal an upcoming breakout.

Data from Coinalyze indicated that Open Interest has remained around $400m-$450m for the past three weeks. This lack of rising Open Interest indicated that speculators chose to remain sidelined due to insufficient bullish conviction.

Falling spot CVD illustrated the strong selling pressure in the first half of the month. Over the past ten days, while sell volume decreased, it remained stronger than buying volume.

Overall, it appears Cardano might struggle to recover and surpass the $0.8 resistance. The lack of activity in both spot and derivatives markets signals bearish sentiment. If BTC cannot increase and shift this sentiment, ADA may be on course to drop below the range lows.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.